First Nat'l Bank of Dieterich v. Pointe Royale Prop. Owners' Ass'n, Inc., No. SC 95865

• Court: United States State Supreme Court of Missouri
• Writing for the Court: Paul C. Wilson, Judge
• Citation: 515 S.W.3d 219
• Parties: FIRST NATIONAL BANK OF DIETERICH, f/k/a First State Bank of Red Bud, Respondent, v. POINTE ROYALE PROPERTY OWNERS' ASSOCIATION, INC., Appellant.
• Docket Number: No. SC 95865
• Decision Date: 04 April 2017

515 S.W.3d 219

FIRST NATIONAL BANK OF DIETERICH, f/k/a First State Bank of Red Bud, Respondent,
v.
POINTE ROYALE PROPERTY OWNERS' ASSOCIATION, INC., Appellant.

No. SC 95865

Supreme Court of Missouri, en banc.

Opinion issued April 4, 2017

Karl Finkenbinder and Jacqueline Bryant, Schenewerk & Finkenbinder LLC, Branson, for property owners' association.

Richard L. Schnake, Neale & Newman LLP, Springfield, Donald W. Ingrum, Branson, for the bank.

Paul C. Wilson, Judge

Defendant Pointe Royale Property Owners' Association (the "POA") appeals from a partial judgment entered in favor of Plaintiff First National Bank of Dieterich, f/k/a First State Bank of Red Bud (the "Bank"). The trial court resolved the Bank's first count in its favor, declaring that the Bank was not obligated to pay past due assessments by the POA on properties the Bank purchased at a foreclosure sale. The trial court certified this order for immediate appeal under Rule 74.01(b) and reserved judgment on Bank's second count, i.e., slander of title, until after this appeal of the Bank's first count is concluded. Because the trial court's partial judgment did not dispose of a distinct judicial unit, however, it was not a "final judgment" for purposes of section 512.020(5), RSMo Supp. 2004. Accordingly, this Court has no authority to review this judgment, and the Bank's appeal must be dismissed.

Background

The Pointe Royale subdivision is a common interest community governed by the POA and a recorded declaration of covenants (the "POA Declaration"). The POA Declaration governs the relationship between the developer of the community and all residential and condominium owners in the community. Under the POA Declaration, the POA is entitled to collect assessments from all property owners for the benefit of the community. Article X, section 1 of the POA Declaration provides that "each Owner of a Lot ... shall be deemed to covenant and agree to pay to the Association: (1) Annual Assessments, and (2) Special Assessments."

To ensure these assessments are paid, the POA Declaration gives the POA two separate and distinct remedies: (1) to place a lien on the property in the amount of the assessment, or (2) to sue the property owner directly to collect the assessment as a personal obligation. Article X, section 7 of the POA Declaration states: "If Assessments have become delinquent, such Assessments shall bind property in the hands of the then Owner, his heirs, devisees, personal representatives and assigns. The personal obligation of the Owner to pay such Assessments shall remain his personal obligation and shall pass to successors in title."

The Bank provided loans to owners of eight condominium units within the Pointe Royale subdivision. Each of these loans was secured by a deed of trust. In time, all eight of these owners became delinquent on their loans to the Bank and failed to make timely payments on the POA's assessments. As provided in the POA Declaration, the POA filed liens against all eight

515 S.W.3d 221

properties for the past due assessments. The Bank foreclosed on its deeds of trust and—at the subsequent foreclosure sale—purchased all eight properties. Thereafter, the POA demanded payment from the Bank for all new assessments on the properties it purchased. The POA also demanded the Bank pay all assessments that were past due at the time the Bank purchased the properties at the foreclosure sale.

The Bank paid all of the assessments but filed a lawsuit against the POA. In its lawsuit, the Bank sought relief in two counts: (1) a declaratory judgment action seeking a declaration that the Bank did not owe the assessments that were past due when it purchased the properties and, therefore, that the Bank was entitled to a refund of the amounts it had paid; and (2) an action for monetary damages caused by the POA's slander of the Bank's title to the eight properties.

On June 28, 2013, the Bank's lawsuit was tried to the bench. As to Count I, the trial court declared that the liens regarding the POA's pre-foreclosure assessments had been extinguished by the foreclosure. In addition, the trial court declared there was no basis to hold the Bank personally liable for those assessments and, therefore, entered judgment ordering the POA to refund those amounts to the Bank. As to Count II, the trial court noted the Bank had stated a cause of action for slander of title but adjudged that, "[p]ursuant to the agreement of counsel, if the Judgment...